CNBC’s Jim Kramer said Thursday that he remembers the bullishness towards the defense industry and the four stocks he believes are investable.
“There is at least one industry that is developing now, and it will grow no matter what [Federal Reserve] The US economy in particular or in general. I’m talking about the defense industry, where fires are burning. “ “Mad Money” host said.
“The Russian invasion of Ukraine is a game-changer for the defense industry, and you have to be anonymous to not really notice,” he added later.
Here is a list of Kramer’s four investable defense stocks:
- Lockheed Martin
- Northrop Grumman
Kramer noted that iShares US Aerospace & Defense ETF and Invesco Aerospace & Defense ETF fell year-to-date by about 4% and 5%, respectively, while the S&P 500 fell by about 18%.
“It’s just the beginning. If defense contractors can hold it well during the worst tapes of the year, I bet they can grow when the market becomes a little less hostile.” He said.
He added that the United States and European countries would probably invest more in the defense sector.
The United States, which on Thursday passed a $ 40 billion security assistance package for Ukraine, will have to spend on replenishing its own stockpile of military equipment while continuing to send aid to the warring country, Kramer said.
Citing the recently launched bids from Sweden and Finland to join NATO, Kramer predicted that the two countries would increase their military spending.
“If Sweden and Finland join, they will have to substantially increase their defense spending as part of their obligation to the treaty – but then again they will probably do it anyway if they are right next to Russia,” he said.
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